Just Group PLC BUSINESS UPDATE FOR THE PERIOD ENDED 30 SEPT 2017 (1533V)

TIDMJUST

RNS Number : 1533V

Just Group PLC

01 November 2017

 
 
NEWS RELEASE  www.justgroupplc.co.uk 
 

1 November 2017

JUST GROUP plc

BUSINESS UPDATE FOR THE PERIOD ENDED 30 SEPTEMBER 2017

CONTINUED PRICING DISCIPLINE, FURTHER COST SYNERGIES

Just Group plc(1) ("Just", "the Group") announces a business update for the period ended 30 September 2017.

Highlights

 
      --   Total Retirement sales for 9M 17 were 1% lower 
            than the pro forma(2) nine month comparative 
            figure as we continue to focus on profit growth. 
            Statutory basis total sales rose 3% from GBP1,583m 
            in 9M 16 to GBP1,631m in 9M 17 
      --   Guaranteed Income for Life (GIfL) 9M 17 sales 
            were broadly flat, but with sales continuing 
            to benefit from individual customers transferring 
            from defined benefit pensions to a drawdown 
            and GIfL mix 
      --   Defined Benefit De-risking sales of GBP564m 
            in 9M 17 were broadly in line with pro forma 
            9M 16 
      --   9M 17 Lifetime Mortgage (LTM) advances of GBP367m 
            amounted to 30% of Retirement Income sales, 
            as we continue to optimise matching 
      --   Merger cost savings now exceed the GBP45m revised 
            target run rate and remain a key element of 
            delivering a better return on equity across 
            the business. 
 
 
                                           Pro forma            Statutory 
                                9 months    9 months             9 months 
                                      to          to                   to 
 Just Group new business(3)     30/09/17    30/09/16   Change    30/09/16 
                                    GBPm        GBPm        %        GBPm 
 Defined Benefit De-risking          564         578      (2)         578 
 Guaranteed Income 
  for Life                           607         604        1         527 
 Care Plans                           52          78     (33)          62 
                              ----------  ----------  -------  ---------- 
 Retirement Income 
  sales                            1,223       1,260      (3)       1,167 
 Drawdown                             37          15      148          15 
                              ----------  ----------  -------  ---------- 
 Total Retirement 
  sales                            1,260       1,275      (1)       1,182 
 Protection                            4           4       11           3 
 Lifetime mortgage 
  loans advanced                     367         465     (21)         398 
                              ----------  ----------  -------  ---------- 
 Total new business 
  sales                            1,631       1,743      (6)       1,583 
                              ----------  ----------  -------  ---------- 
 

Rodney Cook, Group Chief Executive, said:

"Our focus on margin rather than volume continues to deliver profit growth. This disciplined pricing approach and further progress in achieving cost synergies mean margins and IRRs(4) continue to improve. The group's return on equity will benefit as a result, and we remain on track to deliver a sustainable capital model. Our successful focus on sustainable growth in attractive markets gives us increasing confidence of delivering on full year expectations."

New business sales by quarter (GBPm, Pro forma)

 
                       30 Sep   30 Jun   31 Mar   31 Dec   30 Sep   30 Jun   31 Mar 
 3 months to:            2017     2017     2017     2016     2016     2016     2016 
 Defined Benefit 
  De-risking              269      170      125      365      414      121       43 
 Guaranteed Income 
  for Life                217      216      174      174      207      234      163 
 Care Plans                18       17       17       19       20       29       29 
                      -------  -------  -------  -------  -------  -------  ------- 
 Retirement Income        504      403      317      559      641      384      235 
 Drawdown                  14       11       12       10        9        4        2 
                      -------  -------  -------  -------  -------  -------  ------- 
 Total Retirement 
  sales                   518      414      328      569      650      388      237 
 Protection                 1        1        2        1        2        1        1 
 LTM loans advanced       137      124      107       95      143      173      149 
                      -------  -------  -------  -------  -------  -------  ------- 
 Total new business 
  sales                   656      539      436      665      795      562      387 
                      -------  -------  -------  -------  -------  -------  ------- 
 

Notes

1. The company changed its name from JRP Group plc to Just Group plc at the AGM on the 18(th) May 2017.

2. The merger of Just Retirement and Partnership is required for accounting purposes to be treated as an acquisition by Just Retirement of Partnership with an effective date of the beginning of April 2016. Accordingly, the statutory comparative information includes 9 months of sales by Just Retirement but only 6 months by Partnership. Pro forma sales are presented as though the merger took place at the beginning of January 2016, in order to give a better understanding of the merged Group.

   3.     Numbers in table subject to rounding. 
   4.     IRR: Internal Rate of Return 
 
 Enquiries 
 
  Investors / Analysts               Media 
 
  James Pearce, Director             Stephen Lowe, Group Communications 
  of Group Finance                   Director 
 
  Telephone: [phone]            Telephone: [phone] 
  085 099                            827 301 
  [e-mail]       [e-mail] 
 
  Paul Kelly, Investor Relations     Temple Bar Advisory 
  Manager                            Alex Child-Villiers 
  Telephone: [phone]         William Barker 
  8127                               Telephone: [phone] 
  [e-mail]         1080 
================================  ===================================== 
 
 
 FINANCIAL CALENDAR           DATE 
===========================  ================= 
 Lifetime mortgage seminar    23 November 2017 
===========================  ================= 
 Results for the year ended   15 March 2018 
  31 December 2017 
===========================  ================= 
 

A copy of this announcement will be available on the Group's website www.justgroupplc.co.uk

JUST GROUP PLC

GROUP COMMUNICATIONS

Vale House, Roebuck Close

Bancroft Road, Reigate

Surrey RH2 7RU

This information is provided by RNS

The company news service from the London Stock Exchange

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November 01, 2017 03:00 ET (07:00 GMT)